Rob Black’s Winners and Losers: Samsung halts production of Galaxy Note 7

SAN FRANCISCO (KRON)—-On Tuesday’s edition of Rob Black’s Winners and Losers, KRON4’s financial expert Rob Black talks with KRON4’s James Fletcher about Samsung halting production of the Galaxy Note 7.

The primary reason to halt production of the phone was tied to customer safety.

No one died from the phones catching on fire, but stopping production was bound to happen eventually, according to Black.

“This is really bad for the company,” Black said. “They are going to lose $17 billion on it.”

Samsung has 22.4 percent of the world’s share of the market in smartphones and Apple stands at 11.8 percent, Black said.

With Samsung stopping its production line of the Galaxy Note 7, both Google and Apple smartphone sales will benefit from this.

This is the second major recall for a Samsung phone in the last three product cycles, Black said.

“They better get their Samsung 8 right or the company faces basically losing the market completely,” he said.

Tesla told the city of Fremont it wants to add 4.6 million square feet to its factory which currently is 4.5 million, according to Black.

The company bought 25 acres north of the factory, he said.

Tesla hopes to double the number of workers it already has. Right now, the company has 6,200 workers.

“That will help housing for sure,” Black said.

Amazon is planning to build convenience stores in hopes of expanding into the grocery store business.

“Online groceries only count for two percent of the market,” Black said.

Amazon is also thinking about putting kiosks inside stores, according to Black.

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